Artificial Intelligence in Cybersecurity Market by Components (Hardware, Software, and Services), by Deployment (Cloud-Based and On-Premises), by Technology (Machine Learning (ML), Natural Language Processing (NLP), Deep Learning (DL), and Others), by Application (Threat Detection & Response, Risk Analysis, and Others), and by End-User (Government, Defence, Enterprises, and Others) – Global Opportunity Analysis and Industry Forecast 2024-2030

Market Overview

The global Artificial Intelligence (AI) in Cybersecurity Market size was valued at USD 22.21 billion in 2023 and is predicted to reach USD 96.05 billion by 2030 with a CAGR of 23.3% from 2024-2030. The artificial intelligence in cybersecurity market refers to the segment of the cybersecurity industry that leverages artificial intelligence technologies to enhance security measures and defend against cyber threats. AI in cybersecurity is a combination of advance technologies with cybersecurity, providing advanced functionalities for the detection and response to threats. AI-driven automation streamlines security operations, enabling swift incident response and mitigation. AI refers to technology that trains machines to imitate human intelligence processes, while ML involves the use of algorithms to enable machines to learn from data and improve over time. With AI's ability to analyze vast volumes of data and extract actionable insights, cybersecurity professionals can enhance their decision-making processes and prioritize resources effectively. In essence, AI and ML in cybersecurity represents a transformative approach to safeguarding digital assets and infrastructure in an increasingly interconnected world.

Market Dynamics and Trends

The escalation of geopolitical factors, including state-sponsored cyber activities, international cyber conflicts, and heightened tensions between nations on the global stage, is significantly propelling the artificial intelligence in cybersecurity market growth.

According to International Crisis Group there are various major conflicts recorded around the world such as Israel-Palestine war started in 7th October, 2023 and the Russia-Ukraine war in the year 2022. With these change in geopolitical landscape government is prioritizing and enhance their cyber system to safeguard critical assets and maintain a national security, thereby propelling the growth of the market.

Moreover, the rising digitalization, and increasing adoption of smart devices such as smart phones and personal computer in organisations is further propelling the growth of the market. As organizations grapple with data protection and privacy concerns amid rising digitalization, AI-powered cybersecurity solutions play a crucial role in safeguarding sensitive information and ensuring compliance with data protection regulations.

AI-powered cybersecurity solutions are essential in offering enhance defenses capable of analysing vast amounts of data threats and tackle them in real-time. Thereby, with the increasing adoption of digitalization, the artificial intelligence in cybersecurity market demand increases significantly.

Furthermore, the global surge in e-commerce sector is further propelling the growth of the market. In e-commerce sector cybersecurity is essential to ensure safe transaction between the buyers and sellers, and to prevent sensitive data such as credit card numbers and account numbers from hackers. 

AI-powered cybersecurity solutions offer advanced threat detection capabilities, helping e-commerce companies identify and mitigate emerging threats in real-time, propelling the growth of the market. However, geopolitical regulations and international agreements hampers the implementation of AI cybersecurity, thereby limiting the market expansion.

On the other hand, the integration of advance intelligence system such as public key infrastructure (PKI), which are capable of detecting emerging AI threats such as deepfakes is expected to create future opportunities for the market. This strategic adoption enhances the resilience against evolving cyber threats as well as it paves the way for innovative solutions and services to address the frequently changing cybersecurity landscape.

Market Segmentations and Scope of the Study

The artificial intelligence in cybersecurity market report is segmented on the basis of components, deployment, technology, application, end-user, and region. Based on components, the market is divided into hardware, software, and services. On the basis of deployment, the market is segmented into cloud-based and on-premises. On the basis of technology, the market is bifurcated into machine learning (ML), natural language processing (NLP), deep learning (DL), and others. On the basis of application, the market is further divided into threat detection & response, risk analysis, and others. On the basis of end-user, the market is further bifurcated into government, defence, enterprises, and others. Regional breakdown and analysis of each of the aforesaid segments includes regions comprising of North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

North America holds the dominant share of the artificial intelligence in cybersecurity market at present and is expected to continue its dominance during the forecast period. This is due to the rise in e-commerce sector in North America region.

According to a report published by U.S. Census Bureau, in the U.S. total retail sales in the 3rd quarter of 2023 was USD 284,103 million, which is 15.6% of total retail sales compared to USD 252,107 million, which was 14.1% in the 3rd quarter of 2022, therefore propelling the growth of the market. Moreover, the presence of major companies such as NVIDIA Corporation, International Business Machines Corporation, and Microsoft within the North America region is further propelling the growth of the market in the region.

These companies play a crucial role in driving advancements, innovation, and market expansion within the artificial intelligence in cybersecurity industry. For instance, in October 2023, IBM launched new Threat Detection and Response Services (TDR) powered by AI, offering continuous monitoring, investigation, and automated security remediation around the clock.

These services utilize AI to consistently evaluate and automatically suggest the most efficient detection rules, enhancing the quality of alerts and expediting response times. This new launch is expected to advance the cybersecurity methods with enhance capabilities, fuelling the growth of market, within the region.

On the other hand, Asia Pacific is showing a steady rise in the AI-powered cybersecurity market. This is due to the surge in adoption of smart devices such as smart phones and personal computers which significantly increases the digitalization in numerous fields such as internet banking, online shopping and others.

According to a report published by GSM Association, in July 2023, the smartphone adoption in Asia-Pacific region is expected to exceed 3 billion smartphone connections by the year 2030. Thus, with the rise in smartphones the risk of cyberattacks surges consequently, thereby increasing the need for AI in cybersecurity market.

Moreover, change in geopolitical scenarios and surging interstate tensions within the Asia Pacific region and is further surging the demand for the market. For instance, as per Vivekananda International Foundation, the state sponsored cyberattacks in India increased by 278% between 2021 and 2023. This surge in cyber-attacks indicates the escalating geopolitical tensions within the region, thereby increases the demand for AI-backed cybersecurity to defend and uphold the integrity of the nation.

Competitive Landscape

The artificial intelligence in cybersecurity industry comprises various market players such as International Business Machines Corporation, Cisco Systems Inc., Intel Corporation, CyberArk Software Inc., Microsoft, Micron Technology Inc., Darktrace, Cybereason, Deep Instinct, NVIDIA Corporation, and among others. These market players are adopting various strategies such as launch and making strategic partnership related to the business across various regions to maintain their dominance in the market.

For instance, in March 2023, Microsoft launched the Microsoft Security Copilot, an AI cybersecurity solution that provides personalized insights to empower security teams to defend at machine speed with generative AI and machine learning capabilities, enhancing cyber-defense.

Moreover, in September 2022, NVIDIA and Booz Allen Hamilton, which deals in consulting, analytics, digital solutions, and engineering, collaborated to bring an AI-enabled, GPU-accelerated cybersecurity platform. The platform enables next-generation incident response systems that help customers pinpoint cybersecurity threats, strengthening the cybersecurity process.

Key Benefits

• The report provides a quantitative analysis and estimations of the artificial intelligence in cybersecurity market from 2024 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future AI in cybersecurity market trends to depict the prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porter’s Five Forces model is elaborated in the study.

• Value chain analysis in the artificial intelligence in cybersecurity market study provides a clear picture of the roles of stakeholders.

Artificial Intelligence in Cybersecurity Market Key Segments

By Components

• Hardware 

• Software 

• Services

By Deployment

• Cloud-Based 

• On-Premises

By Technology

• Machine Learning (ML)

• Natural Language Processing (NLP)

• Deep Learning (DL) 

• Others

By Application

• Threat Detection & Response

• Risk Analysis

• Others

By End-User

• Government

• Defence 

• Enterprises 

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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